CHILDERSBURG, Alabama -- Alabama Green Lubricants has announced a $49 million re-refinery project for Childersburg Industrial Park, to be up and running by the middle of next year.

The re-refinery, the company's first, will collect used motor oil for cleaning and re-refining and is expected to employ about 25 people.

Calvin Miller, executive director of the Talladega County Economic Development Authority, said the announcement represents a large capital investment in the community.

"It adds some diversification to the area economy, as there are a lot of automobile-related industries already in the area," Miller said. "And there will be a lot of construction jobs coming out of this project."

Company officials said the site was chosen because of its access to transportation and its proximity to the company's target area. The industrial park site offers access to U.S. 280 and railroads.

The re-refinery will handle about 32 million gallons per year, provided through Chemical Engineering Partners. AGL founder and CEO Ramki Srinivasan said CEP was chosen because of its work in the U.S., Europe and South America.